Leemanz Chap 1 RQ

Leemanz Chap 1 RQ - managerial accounting prepares statements for internal use and financial accounting prepares statements for external use 5 What

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ACC 175 Chapter One Review Questions 1. What is the fundamental purpose of accounting? The fundamental purpose of accounting is to provide accurate, useful, and timely financial information. 2. What are some examples of external and internal users of financial statements? Finical statements are used both external and internal uses. These include statements for managers, investors, banks, government, and employees. 3. What is the difference between accounting and bookkeeping? The difference between accounting and bookkeeping is that bookkeeping records business transactions were as accounting analyzes the business transactions. 4. How is financial accounting different from managerial accounting? The difference between financial accounting and managerial accounting is
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Unformatted text preview: managerial accounting prepares statements for internal use and financial accounting prepares statements for external use. 5. What are the definitions of the terms accounts receivable and accounts payable ? Accounts receivable are accounts of people who owe you money and accounts payable means you owe someone else. 6. What is the attest function as performed by a certified public accountant? The attest function of the CPA is a opinion formed after an audit. 7. What is a consolidated financial statement? Consolidated financial statements report the financial results as if they represent a single business entity....
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This homework help was uploaded on 04/20/2008 for the course ACC 175 taught by Professor Broden during the Spring '08 term at Wake Tech.

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